Dr Marcus Powe Rejection,Why Customers Often Say No


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Rejection - Why Customers Often Say ’No!’
Dr Marcus Powe, was the guest speaker at a Servcorp Business Shorts event held at 101 Collins Street Melbourne where he shared insights on this topic.

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Dr Marcus Powe Rejection,Why Customers Often Say No

  1. 1. Why customers often say no! Who looks forward to change? Your customers and clients?
  2. 2. Drivers of confusionAccelerating rates of economic change Increasing levels of competition Globalisation is pervasive
  3. 3. Drivers of confusion Rapid technical change Business models collapsingWorkforce diversity amplified
  4. 4. Drivers of confusion Resource shortagesSociety transitioning from industrial to knowledge Market turbulence increasing
  5. 5. Drivers of confusionThe rise and influence of special interest groups Market paradoxes – transparency and complexity Social and economic dividends at the same time?
  6. 6. Customers “Erect” Barriers To Slow Down Change Usage Value Risk Tradition Image
  7. 7. Corporates often simply do not want to commit Expertise Operations Resources Regulations Market access
  8. 8. Usage barrierThey will say.. The new process / product is not compatible with existing work flows, practices, systems, procedures and habits. The innovations will often require significant changes to work practices.
  9. 9. Strategies for the usage barrierWe could… Take a systems perspective, take the time to examine how the process or product will impact on the whole organisation. Integrate - get to the original equipment manufacturers to install / use before the finished product gets to the consumer.
  10. 10. Value barrierThey will say….I can’t see the “value” when I look at the “price” compared with your claimed performanceThe “seeing” often means intangibles as well as,Dollars and cents
  11. 11. Strategies for the value barrierWe could… Demonstrate the performance is superior (the before and after chart) Add further value (Non price)
  12. 12. Before and after
  13. 13. Risk barrierThey could say…. It’s too risky – who else has “it?” – I’m not sure. I need more time and information to make a decision – I just don’t know. I don’t want to be responsible for the decision.
  14. 14. Strategies for the risk barrierWe could… Conduct a trial. Supply testimonials – who else (a third party) often helps. Package the “new” as a system – hide the change in another system.
  15. 15. Tradition barrierThey could say… We have always done it this way. Why change, we are doing a good job? Our systems and procedures are robust. The greater the change, the higher the tradition barriers and the greater the resistance. When a new process or product is introduced, there is always resistance to change.
  16. 16. Strategies for the tradition barrierWe could… Try to understand and respect traditions & that fear of change is real. Educate. Engage opinion leaders.
  17. 17. Image barrierThey could say… What will people think?. We have never done this before, we might confuse our clients. Isn’t their job?Barriers are readily thrown up when it comes to image. Image barriers are traditionally built from social taboos, from stigmas associated with new products/services or from deep seated psychological forces that may be aroused by innovation.
  18. 18. Strategies for the image barrierWe could… Correct the image - change the stereotype. Create an image - symbols. Borrow an image.
  19. 19. Stillness Understand the drivers Empathise with the indecision Take your timeYou are there for them, not to sell them something